Indicator is best used in conjunction with additional indicators as it has the ability to highlight potential overbought or oversold levels. This indicator utilizes upper and lower bands to visually represent price extremes associated with the bands. Additional value can be added to the trading strategy by accessing divergences between price and volume.

Tpg Telecom (ASX:TPM) is currently Oversold highlighting the potential for a short term trend reversal in the upward direction.

Acceleration bands serve as a trading envelope using an instrument’s typical volatility over a standard setting of 20 bars. The user may change the input (close) period length and multiplier factor.